Manufacturing: SMMT – car and commercial vehicle production continues steady increase

UK commercial vehicle output continues to grow with its best July for six years as UK car production rise for the third consecutive month.

UK commercial vehicle (CV) production grew by 43.9% in July, with 8,097 units of the latest vans, buses, trucks, coaches and taxis rolling off British factory lines, according to the figures released today by the Society of Motor Manufacturers and Traders (SMMT). Output in July was the highest for the month since 2016,¹ and rounded off the best performing first seven months to a year in a decade,² with 58,693 CVs built in Britain so far this year.

Exports continued their double-digit growth this year, with July’s uplift of 34.2% to 4,533 units, marking the eleventh consecutive month of growth. Output for the domestic market also grew strongly, rising 58.5% on last year, to 3,564 units. In 2022 to date, CV production is up 46.9%, at 58,693 units – some 15.6% above the pre-pandemic five-year average and the best January to July performance since 2012.

Mike Hawes, SMMT Chief Executive, said,

The CV sector continues to provide a shining example of successful UK automotive manufacturing with the best year to date performance since 2012. This is testament to the quality of commercial vehicles made in Britain, which are in high demand at home and abroad. However, the continued success of this export-led sector is not guaranteed, amid some of the toughest economic conditions in living memory. Urgent action is needed to bring down the high energy costs faced by automotive factories if their competitiveness is to be sustained.

UK car production rose for the third consecutive month in July, up 8.6% to 58,043 units, according to the latest figures published today by the Society of Motor Manufacturers and Traders (SMMT). The performance must be set in context, however, as it is compared with July 2021, which was the worst July since 1956 as car makers faced multiple issues including the global shortage of semiconductors and staff absences arising from the ‘pingdemic’ forcing some to alter summer shutdown timings to help manage the challenge.

This July, factories turned out 4,605 additional units, a sign that component shortages may finally be beginning to ease. Output, however, still remains -46.4% below pre-pandemic levels, illustrating that full recovery is some way off.¹ Production for the UK market surged 40.7% to 11,583 units with exports also up, but by a more modest 2.8%, in part reflecting the structural and model changes at play.

Mike Hawes, SMMT Chief Executive, commented:

A third consecutive month of growth for UK car production is, of course, welcome and gives some hope that the supply chain issues blighting the sector may finally be starting to ease. But other challenges remain, not least energy costs which are increasing at alarming rates. If we are to attract much needed investment to drive the production of zero emission vehicles, urgent action is needed to mitigate these costs to make the UK more competitive for manufacturing. This must be a priority for the next Prime Minister else we will fall further behind our global rivals, risking jobs and economic growth.

For more news from the Society of Motor Manufacturers and Traders, visit their website HERE

Images: SMMT